Some AMCs are coming out with multi-asset funds that include gold, debt, domestic and international equity. I would like to know your opinion on whether one should invest in these funds and leave to the fund manager the varying asset allocations that one should have according to the market conditions?
It looks like an attractive idea but whenever I have looked at even a simpler dynamic asset-allocation fund, I haven't come across implicit fund managers. I would rather like you to do it yourself and customise your portfolio.
You need fixed-income depending on your emergency requirement or your cash-flow requirement. The money that you need immediately or over the next two-three years should be in debt. Your long-term money should be invested in a mixture of domestic and international equity. For domestic equity, one or two good multi-cap funds will do the job. For international equity, a US-opportunities fund or Nasdaq 100 will work. And you can have gold in the form of Sovereign Gold Bond or a gold fund to a certain extent because gold should be considered as an insurance and not investment.
So, you decide your allocation for all three. And you are the best judge to do it. This is because no one would know the specifications of your requirement better than you. And mixing it up is not that complicated.